Why Nevada Is Pulling Business from California: Incentives That Actually Deliver
No red tape—just real savings
California’s credits are competitive and unpredictable. Nevada’s are formula-driven, transparent, and designed for companies that add jobs and invest in the state. Core abatements include:
Sales & Use Tax Abatement on qualified equipment—rate can drop to 2% with board approval.
Modified Business Tax (payroll) Abatement—50% abatement on the base rate for four years.
Personal Property Tax Abatement—up to 50% for 10 years on eligible assets.
Nevada’s Standard Tax Abatement sheet also outlines a reduced tier (when wages are 85–99% of statewide average) and shows how benefits differ for new vs. expanding companies.
Who qualifies?
To qualify for standard abatements, a company must meet two of three criteria—Average Wage, Capital Investment, and Number of Primary Jobs—and offer health insurance covering at least 65% of employee premiums. Nevada also requires you to register in-state, operate for five years, and generate >50% of project revenue from outside Nevada.
Urban vs. rural & expansion thresholds (examples):
Capital investment or job-creation minimums vary by location (e.g., $5M manufacturing urban / $1M rural, or 50 FTE urban / 10 FTE rural). Expansions must increase headcount by ≥10% or by 25 (urban) / 6 (rural), whichever is greater.
Special programs worth noting
Data centers. Nevada offers up to 75% personal property tax abatement and sales/use tax as low as 2% for 10 or 20 years (with GOED Board super-majority approval). Qualification tiers are 10 jobs / $25M (10-year) or 50 jobs / $100M (20-year), with wage and residency requirements.
Aviation & recycling. Aviation projects can also access sales/use and personal property abatements; recycling businesses may receive real-property abatements up to 50% for 10 years.
How the process works (fast and predictable)
Apply with your RDA (e.g., EDAWN in Northern NV).
GOED staff analysis (eligibility + economic impact).
GOED Board decision at a public meeting.
Contract & Taxation package—once signed, the Department of Taxation administers the abatements.
Accountability: The state can audit compliance (commonly at 2 and 5 years) and claw back abatements if terms aren’t met—so the program stays credible.
Local support: EDAWN partners with relocating companies on site selection, workforce, and utility planning; they also publish cost comparisons for Reno vs. major California markets.
What this can mean in practice
If an industrial user invests in modern equipment, lowering sales/use tax to 2% (where approved) and cutting personal-property tax by up to 50% for 10 years can materially change total cost of occupancy—often more impactful than chasing a narrow California credit. Add a 50% MBT abatement and the ROI conversation gets straightforward.
If you’re a California manufacturer, 3PL, or light-industrial user weighing expansion, we’ll model eligibility, timing, and after-tax ROI—then line up tours and intros with GOED/EDAWN.
Coming up next in the series:
We’ll break down how Reno’s infrastructure, workforce, and logistics access give it a unique edge for West Coast industrial operations.
Erik Riekenberg
Associate Broker | Industrial Specialist
Cushman & Wakefield – Northern Nevada
NV License # S.0199834
The views expressed in this blog are my own and do not necessarily reflect those of Cushman & Wakefield.